McCain Foods is expanding its operations in Hawke's Bay with a $19 million investment in its Hastings plant.
Construction is under way and expected to finish next year, and will bring more casual jobs during the next processing season.
Work includes upgrades to equipment, new freezers, a more efficient packing line and
new bean-processing equipment.
McCain Foods Australia and New Zealand managing director Steve Yung said the changes would boost processing of peas, beans and carrots from an average of 18,000 tonnes to more than 20,000 tonnes a year.
Mr Yung said New Zealand growers produced high-quality vegetables that were competitively priced, which "if costs are maintained, augurs well for the future."
Vegetable grower Doug Whitfield said the news was positive for farmers in the region.
"It means as long as the returns are up in line with the cost of production, it'll be good for the area," he said.
"It'll be more opportunity for land usage around the bay."
Mr Whitfield, who grows sweetcorn and peas, said the benefit for farmers would depend on prices for the next season, which had not been announced.
The extra vegetables processed by McCain will serve the domestic New Zealand market and be exported to Australia, Asia and the Pacific.
McCain has 160 local staff, and the company said the development would mean more temporary jobs during the 2011 processing season. The Hastings site in Omahu Rd was bought by McCain in 1996 when it acquired Grower Foods.
